The province of Thanh Hoa has strengthened its solutions to support workers who lost their jobs in light of the economy’s numerous challenges, which have forced many businesses to reduce staff and rely on a lack of orders.

According to statistics, by the end of 2022 and the beginning of 2023, in Thanh Hoa province, there are more than 20 businesses that have to reduce working hours, suspend labor contracts, and terminate labor contracts for about 7,000 people due to a lack of orders.

DIFFICULT FOR MANY BUSINESSES TO FORGET EMPLOYEE’S INSURANCE

Some companies have to cut labor, even stop operating as TCE Jeans Co., Ltd in Hoang Dong commune, Hoang Hoa district recently cut 1,800 workers (the company has 5,000 workers); Fruit Of The Loom Co., Ltd in Quang Loi commune, Quang Xuong district cut 900 workers out of 3,200 workers; T&H Newstar Co., Ltd. in Dong Hai Ward, Thanh Hoa City and ABC Company Ltd., Thieu Duong Ward, Thanh Hoa City temporarily suspended operations because there were no orders.

In 15 enterprises of Hoa Loi Group with a total of more than 110,000 workers (accounting for 66% of employees working in 36 FDI enterprises in Thanh Hoa province), over the past few months, the number of orders has decreased by about 50%. Therefore, we do not organize overtime, causing workers’ income to decrease from 2 to 4 million VND/person/month.

The fact that businesses face difficulties when orders decrease, many workers lose their jobs. This has resulted in many enterprises not fully implementing the provisions of the law on labor, an increase in debt to pay social insurance premiums, late payment of wages, and delay in payment of benefits to employees. According to statistics of Thanh Hoa Social Insurance, this province has more than 3,300 units and businesses that owe social insurance and health insurance an amount of more than 466 billion VND, of which hundreds of units are “sluggish”, debt from 12 months or more, many units go bankrupt, dissolved, difficult to recover. This has the potential to lead to workers at enterprises going on strike, illegally gathering large numbers of people, and disrupting security and order.

Sharing with VnEconomy, Ms. Le Thi Thuy (34 years old) from Yen Cat town, Nhu Xuan district, said: “It has been nearly 10 years since I worked as a worker in Le Mon Industrial Park (Thanh Hoa City), but never have I seen a decrease in income like the last time. At this time, the company reduced orders, causing most of us not to work overtime and reduce working hours, resulting in a sharp decrease in income. Before that, my monthly income was about 8 million VND, but recently it is only over 5 million VND/per month.

Faced with the above situation, recently, the People’s Committee of Thanh Hoa province has sent an official dispatch requesting departments, agencies, and localities in the area to strengthen solutions to support workers who lost their jobs, develop a flexible, efficient and sustainable labor market and take care of workers’ lives.

Accordingly, the Chairman of Thanh Hoa Provincial People’s Committee requested departments, agencies, and localities to strengthen monitoring, grasping, inspecting, and monitoring the situation of production and business activities, salary payments, and bonuses to employees, especially those who have lost their jobs or temporarily lacked jobs to have timely and effective support solutions, ensure jobs, incomes and stabilize their lives. Special attention is given to workers who lost their jobs or have unstable jobs returning from the southern and northern provinces during the Lunar New Year of the Rabbit in 2023 to have access to find local jobs and work abroad.

Implement preferential credit policies, prioritizing supporting employees who have lost their jobs in enterprises to get loans for self-employment through loan activities for job creation at the social policy bank. Chairmen of People’s Committees of districts, towns, and cities direct the Division of Labor – Invalids and Social Affairs, People’s Committees of communes, wards, and townships to review local workers who have lost their jobs in enterprises, have a need to borrow capital to create self-employment; proactively provide a list to the Bank for Social Policies at the same level to balance and arrange capital sources and create conditions for employees to get loans.

SOLVING NEW JOBS FOR MORE THAN 4,300 EMPLOYEES

The Department of Labour, Invalids and Social Affairs of Thanh Hoa also took the initiative and coordinated with the Management Board of Nghi Son Economic Zone and Industrial Parks and localities to regularly grasp the situation of reduction, dismissing many employees, temporarily suspending the performance of labor contracts of enterprises inside and outside the province; guide, supervise and inspect the implementation of labor law provisions such as: Terminate labor contracts, suspend the performance of labor contracts, take unpaid leave, develop labor use plans, severance allowances, job loss allowances, etc. At the same time, regularly update and monitor the situation of labor, employment, salary and bonus.

Thanh Hoa Department of Labour, Invalids and Social Affairs continues to direct Thanh Hoa Employment Service Center to grasp the situation at businesses facing difficulties and have to reduce or dismiss many employees to provide counseling, job introduction and vocational training for employees whose labor contracts are terminated; guide employees to carry out procedures and dossiers of application for unemployment insurance according to the provisions of labor law. To guide and support enterprises with difficulty to cut or lay off many employees in order to train, retrain and improve vocational skills to maintain jobs for workers from unemployment insurance funds.

Strengthen support, introduce, and create favorable conditions for businesses and organizations that are eligible to send workers to work abroad to coordinate and recruit workers in the locality. In particular, focusing on sending laborers to work in markets with high, stable income and advanced working environments.

Before these positive activities, only in January 2023, did Thanh Hoa province created new jobs for 4,330 workers. Which, there are 506 employees working abroad for a definite time.

At the same time, only in January 2023, Thanh Hoa Employment Service Center held 3 job sessions, with 24 businesses participating and nearly 2,200 employees registering for recruitment; guiding more than 1,500 employees to complete application documents to work in Korea.

In addition, the Department of Labour, Invalids and Social Affairs of Thanh Hoa province also provided information on the labor market and related policies for 8,400 employees; provide consultancy on employment, labor export and related policies for 4,370 labors. Issued 71 new work permits, re-issued 5 work permits and extended 29 work permits for foreign workers working in the area; receiving more than 2,100 applications for unemployment benefits from employees who lost their jobs; unemployment benefits for 2,178 people.

Source: VNEconomy

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